Correlation Between Lord Abbett and Nuveen Santa
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Nuveen Santa at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lord Abbett and Nuveen Santa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Inflation and Nuveen Santa Barbara, you can compare the effects of market volatilities on Lord Abbett and Nuveen Santa and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Lord Abbett with a short position of Nuveen Santa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Nuveen Santa.
Diversification Opportunities for Lord Abbett and Nuveen Santa
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Nuveen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Inflation and Nuveen Santa Barbara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Santa Barbara and Lord Abbett is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Lord Abbett Inflation are associated (or correlated) with Nuveen Santa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Santa Barbara has no effect on the direction of Lord Abbett i.e., Lord Abbett and Nuveen Santa go up and down completely randomly.
Pair Corralation between Lord Abbett and Nuveen Santa
Assuming the 90 days horizon Lord Abbett Inflation is expected to under-perform the Nuveen Santa. But the mutual fund apears to be less risky and, when comparing its historical volatility, Lord Abbett Inflation is 3.33 times less risky than Nuveen Santa. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Nuveen Santa Barbara is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,540 in Nuveen Santa Barbara on August 25, 2024 and sell it today you would earn a total of 102.00 from holding Nuveen Santa Barbara or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Inflation vs. Nuveen Santa Barbara
Performance |
| Timeline |
| Lord Abbett Inflation |
| Nuveen Santa Barbara |
Lord Abbett and Nuveen Santa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Nuveen Santa
The main advantage of trading using opposite Lord Abbett and Nuveen Santa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Nuveen Santa can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nuveen Santa will offset losses from the drop in Nuveen Santa's long position.| Lord Abbett vs. Lord Abbett Vertible | Lord Abbett vs. Mainstay Vertible Fund | Lord Abbett vs. Virtus Convertible | Lord Abbett vs. Allianzgi Vertible Fund |
| Nuveen Santa vs. Lord Abbett Inflation | Nuveen Santa vs. Guidepath Managed Futures | Nuveen Santa vs. Federated Hermes Inflation | Nuveen Santa vs. Ab Municipal Bond |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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